Los Angels,
30-Jul-2009
I love Ambani’s and I loved the way Dhirubhai built his empire. I love the way these two brothers are running their respective businesses. Business flourished from some thousand Rupees to millions and now in Billions. Even Government including Prime minister suggested these corporate honchos, not to fight but support each other. Indian Business community, Politicians, Cricketers, News men/women and Film Industry are divided in favor of either of brothers. Money rotates every thing; loyalties and royalties are revolving around Ambanis.
However crying baby of the moment is Anil. People reading the news that Petroleum Minister and Ministry are supporting Mukesh. And this allegation (Truth of the Moment) is coming from horse’s mouth, Anil Ambani. I believe in him, and my 2 cents for this, that if Supreme Court starts probing it, they will definitely find that Anil is right.
When Anil is saying that Mukesh bought them all, there is no reason to deny this. After all they are in business of buying Governments and politicians since long. Can some one ask Anil, how he got in to Upper house and became Member of Parliament. Ask him how Dhirubhai, Mukesh and himself have manipulated the Stock exchanges. In every era, words have different meaning. In our era, historians will put Reliance as synonym of manipulations.
Paternal Business is divided between these two rivals but how will you divide the GREED, the same greed that is running in their blood. However talking against them would upset millions, including shareholders, secondary businessmen that are dependent on them, employees, and families of employees, politicians, bureaucrats, cricketers and film walas.
RIL found one of the Kuber ka khazana in KG basin, in Godavari. Brothers are locking their horns for this natural wealth of Indian people. Alas, Government has sold the property of entire nation to RIL in pennies. Mukesh got the lion’s share and Anil is not ready to settle for peanuts. Anil is behaving like Vibhesana, an old character of Indian epic, Ramayana.
However, Greed, the same greed which has built the empire will destroy it.
In our country, Norco Analysis is very common, when Narendra Modi was asked to undergo Norco analysis test, why not Deora, Anil and Mukesh are asked to take this PIOUS test. After all this is a half a day’s affair. Anil will not go alone, send two A’s (Amar and Amitabh) with him. Shahrukh and Vadra’s will accompany Mukesh.
PS: If you need the ‘Truth’ list is Long. Believe me its not monsoon rain that will drown half of Mumbai, it is Ambani Saga, which will drown most of them.
2 comments:
hi jitendra,
After a long break you are back with KG's of words packed in a modest write up....
Well if we talk about the row made by Anil in his AGM few days back ..there is lot to it including the fact that Indian Government should legally resolve the violation of basic terms of Production Sharing Contract(PSC),which provides the legal framework for exploration, development and production of gas reserves. It should uphold the interests of taxpayers and safeguard them.
PSC usually does give the right to sell gas to any one. But it is not clear if this particular PSC has that clause or not. But PSC definitely will have the clause of selling gas at arm’s length and be market-based.
A price agreed by brothers cannot be considered to be arm’s length. Even if RIL agrees to sell gas at a lower price, the Government is not bound by such a clause since the Government owns all gas reserves, and PSC gives the right to take some portion of those revenues.
Infact, the Government has legal rights to refuse a lower gas price allegedly negotiated between the brothers based on the PSC. If the brothers were on good terms, no one would have found out about this deal.
PSC is an overriding contract, which controls the sharing of gas reserves between the investor that is RIL, and the Government. RIL is bound by the terms of the contract terms. Once RIL gets its share it can decide how to share it with RNRL. But the total lot of gas revenues and how it is shared between the Government and RIL have to be as per PSC.
So here its a lot that is at stake including billions of dollars depending upon how PSC is being implemented.
Unfortunaltely this contract is commercially very sensitive one and public doesn't have any access to it even by RTI.
So its upto Government and those higher officials to fix the best rate according to international markets and expected crude oil prices in the next 20 yrs because rates of gas fluctuates at the nerve of crude oil prices in long term. We have experts in the subject matter and they are expected to arrive at reasonable decision ignoring any sweetheart deals in the past. Here its economy that is on stake on a different note.
Anil Ambani is making a row just because he wants his own pie of "Production Sharing".. mind you its not Profit Sharing that is involved with this deal but Production Sharing is.
P.S.
The total control of the gas market today in India by the Government is a problem. Despite the recommendations of many high-powered committees, the Government has not liberalised the gas market.
Gas prices are fixed on an arbitrary basis by the bureaucrats in the petroleum ministry without allowing the market to decide. Even when India was paying international price to import LNG (liquefied natural gas) at as high as $12/ million British thermal unit (mmbtu) in 2008, the Government-owned gas production was sold at a throwaway price of less than $2.00/mmbtu.
Rest of it has all of us to think , wait and watch..
Nice writing...
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